Investment dip drives BF&M’s $2.2m loss
BF&M Ltd posted a shareholders’ net loss of $2.2 million for the first three months of the year, compared with a profit of $4.8 million in the first quarter of 2019.
The insurer said the loss was driven by a $7.3 million fall in the fair value of $622 million of investments.
John Wight, BF&M’s group chairman and chief executive, said: “Much of this fair value loss has been regained at this time.
“Excluding the fair value loss at March 31, the shareholders’ net income from insurance operations and investment advisory services was $5.1 million, slightly better than expected.”
Mr Wight added: “Throughout the Covid-19 pandemic, the company has continued to operate effectively and efficiently in all jurisdictions.
“Our robust technology platforms and interactive online tools have allowed many of our services to be conducted online by our customers, who are increasingly availing themselves of the ease and convenience that we are able to offer.”
BF&M’s board of directors approved a 24 cent per-share dividend to shareholders of record at June 30.
Equity attributable to shareholders at March 31, 2020, was $275.9 million. General fund assets totalled $1.5 billion, of which $124.2 million was held in cash and cash equivalents.
Gross premiums written for the period decreased from the prior year by 15 per cent to $71.9 million, driven by an expected shift of health premiums between the company and amounts allocated to the Bermuda Government as part of the island’s health-financing reforms, along with lower property and casualty premiums.
Short-term claims and adjustment expenses decreased 27 per cent to $3 million. Life and health policy benefits decreased by 54 per cent to $17.6 million.
Operating expenses increased 4 per cent to $12.2 million for the period.
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